CONTRACT LABOUR REGULATION &

ABOLITION ACT 1970

Presented by: Jagadish Prasad Yadav(29)

OBJECTIVES THE ACT WAS ENACTED WITH AVIEW TO REGULATE THE

CONTRACT LABOUR AND TO PROVIDE FOR ITS ABOLITION IN CERTAIN CERCUMSTANCES.

THE UNDERLYING POLICIES OF THE ACT IS TO ABOLISH CONTRACT LABOUR WHEREVER POSSIBLE AND PRACTICABLE

BENEFITS OF CONTRACT LAWThe need of contract law is undisputed. It is necessary for the following among other reasons.The contract labour would ensure speedy completion

of the assigned work.Comparatively cheaper with less liability on

supervision and control.There will not be much union activities.There is no need of permanent retention of

employee.It is best system for certain activities like

construction, repairs of machines, packing, loading & unloading, etc.

APPLICABILITY & NOT APPLICABLEAPPLICABILITY:To every establishment in which 20 or more

workmen are employed.To every contractor who employs or employed on

any one day of the preceding 12 month 20 or more contract workmen.

NOT APPLICABLE:To establishment in which work only is of only an

intermittent or casual nature is performed.(Non-intermittent: more than 120 days, seasonal work more than60 days)

CONTRACTORS:Who undertakes to provide a given result

for the establishment other than mere supply of goods or articles to such establishment.

PRINCIPAL EMPLOYER:Government-local authority- head of

departmentFactory- the owner, managerMines- the owner, agent.

APPLICABILITY OF OTHER ACTPersons cover under this act will be covered

under:

Factory Act, 1948Employees’ Provident Fund & Miscellaneous

Provisions Act, 1952Employees’ State Insurance Act, 1948 /

Workmen Compensation Act, 1923Payment of Bonus Act, 1965Minimum Wages Act, 1948Payment of Wages Act, 1936

VARIOUS SECTIONS UNDER THIS ACTSec 11 appointment of licensing officerSec 12 licensing of contractorSec 13 grant of licenseSec 14 revocation, suspension of licenseSec 15 appealSec 16 canteenSec 17 rest roomsec 18 other facilitiessec 19 first Aid facilitiesSec 20 liabilities of principal employer in certain casesec 21 responsibility for the payment of wages

SEC 35 POWER TO MAKE RULES

Obligation of principal employer1. Principal employer to get his establishment registered

under the act and rules. ( prosecution under sec 23, 24& 25)

2. Contractors must be licenses.3. Principal employer must provide certain amenities. If employment of contract labour is likely to continue for

more than 6 month and employ contract labour of 100 or more- contractor should provide canteen within 60 days of employment of contract labour.

REST ROOM- within 15 days of commencement, if 3 month or more.

DRINKING WATER. FIRST AID FACILITIES – 1 box for every 150 employees.

CRECHES:Where 50 or more women are employed as contract labour there shall be provided 2 rooms of reasonable dimension.Prohibition of female employment before 6am and after 7 pmURINAL FACILITIESAtleast one urinal for every 50 male & female employees.WASHING FACILITIES:Adequate supply of water @ of 20 lts per employee.

PAYMENT OF WAGESNo wages period shall exceed one monthIf employment is terminated, wages should

be disbursed before the expiry of second working day.

All deductions shall be in accordance with the provision payment of wages Act 1936.

It shall be paid in current coin or currency and to be paid at work site.

The contractor shall disburse the wages in the presence of the principal employer.

CASE LAWSAIR INDIA STATUTORY CORPORATION-1997 (1) LLN 75Contract labour engaged by air India for sweeping, cleaning. Dusting and washing of building are to be absorbed by air India.

STEEL AUTHORITY OF INDIA Vs national union water front worker and other (5 judges bench- 2001LLR 961-SC)Notification by government prohibiting employment of contractor labour for sweeping , cleaning, dusting and washing of building by establishments governed by central government.

CASE LAWSATTE OF HARYANA Vs SURENDRA KUMARContract workman can not claim equal pay on par with regular workman.

THANK YO

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